KAL Energy ready to commence drill works at coal concession

London-based junior miner Kal Energy, Inc said on Wednesday that all of the heavy equipment for the US$2,000,000 work program previously announced, had arrived and is on site.

Five drill rigs are on the property and will be fully operational by March 8, 2007 with initial drill results are expected by March 15, 2007, the company said.

?Previous samples have demonstrated that the quality of Kal Energy's thermal coal deposits contain very low sulphur and ash content -- suitable for electricity generation. This is consistent with other coal producing companies' deposits in Indonesia,? the company said.

KAL Energy's wholly owned subsidiary Thatcher Mining Pte. has the rights to two coal concessions situated near the Mahakam River in North Eastern Kalimantan.This river is a main transportation system for transporting coal to nearby markets. Consulting Geologist, Jonathan O'Dell, has estimated that blocks 16 & 24 could contain over 192,000,000 tons of thermal coal. (alex)